EUR/USD shows divergence and prepares for break or bounce 2016.11.15

EUR/USD

4 hour

The EUR/USD bearish momentum is approaching major support trend lines (green) from the daily chart bottoms. The wave formation could be a wave 1 (green) of a larger wave 5 downtrend (blue).

1 hour

The EUR/USD wave 1 (green) seems to be complete or near completion when considering the divergence between the bottoms (purple line). An ABC zigzag could occur within wave 2 (green). The wave 2 (green) is invalidated if price breaks above the 100% Fibonacci level. A break below the wave 5 (brown) bottom could see price extend towards the Fib targets of wave 5 vs 1+3.

GBP/USD

4 hour

The GBP/USD could have finally completed the wave 4 (green) retracement now that a bearish turn is visible on the 1 hour chart. A downtrend continuation is possible if price pushes below support (green) for a wave 5 (green/blue/purple).

1 hour

The GBP/USD completed 5 bearish waves (orange) as expected yesterday. A bullish zigzag could take place within wave 2 (blue), which would be invalidated if price breaks above the 100% Fibonacci level. A break below the support trend line (green) could see price extend wave 1 (blue) to a lower spot.

USD/JPY

4 hour

The USD/JPY is displaying strong bullish momentum, which has been labelled as a wave 1 (purple).

1 hour

The USD/JPY is building a bullish extension within the wave 1 (purple). The wave 4 (light blue) is invalid if price breaks below the Fibonacci levels of wave 4 vs 3.

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